M21-S3 - Session - Entry Modes - Concepts

Learning objectives

• Understand the conditions under which international expansion is desirable and likely to succeed
• Develop systematic knowledge of the means of international expansion, and when each mode of entry is appropriate

Read the texts: Selecting an entry mode Entry Modes; Selecting an Entry Mode.

Session preparation

The first extract is largely descriptive. It might be that one or more of the entry modes described are not obviously applicable to your venture; for instance, franchising is unlikely to be, so you can skim that section. Still, having a systematic understanding of the options is critical in asking the right questions for each venture and project.

• In general, what does it take for a firm to decide to invest abroad? What are the potential gains and risks?

Questions to consider

• What does this mean for my venture?
• What foreign entry modes might apply to my venture, and how would I choose among those?